How do you protect your good fortune and be smart about how you manage it?
While your financial freedom just became whole lot greater, your wealth management needs just became significantly more complex. How do you protect your good fortune and be smart about how you manage it? You may have heard horror stories of others who have experienced life-changing liquidity events and went from a good fortune to lost fortune. What is often the common theme, is the vast increase in wealth without the robust systems, structures, and fiduciary/fee-only support.
We advise you to think in terms of three buckets: safety, market, and aspirational. The safety and market assets need to be able to maintain your desired standard of living. We help you figure this part out first and foremost – with plenty of room for normal and abnormal economic turmoil.
The aspirational assets are a “war chest” for new levered and unlevered real estate properties, business ventures and/or other more speculative investments that can multiply results (but also can also go to zero – so should be limited to a very affordable amount – if any). Therefore, our approach to planning considers all possibilities and seeks to help you increase the probability of long-term success.
Allocating the right amount to the various buckets, safety, market, and aspirational, as well as holding the right mix of investments is the key to a successful financial strategy. However, what works for one investor, may not work for another. Being strategic about how you invest and diversify into different types of assets spreads out the risk.
Diversification works because the assets react differently to the same economic event. We will consider all the potential outcomes and build a structured plan and investment portfolio that takes into account the various buckets and asset classes, ensuring your entire financial picture is optimized for you and your circumstances. Having the system, structure and support in place to determine the best path is an essential step to ensure you protect and optimize your position now and in the future.
When it comes down to it, wealth management, retirement planning and portfolio management all have three key outcomes in mind:
- What is the net result of all your efforts?
- Is your net worth growing, stagnating or depleting?
- Are there any adjustments you need to make in order to be more aligned with your desired long-term path and plan?
Our Stages of Financial Freedom® Roadmap is an excellent tool to help you think about and articulate your answers to all three questions. All too often, high and ultra-high net worth individuals can get caught in the weeds, obsessed about one component of their finances while unknowingly neglecting others. This is where this big-picture view, along with our broad and detailed work can help you.
Your Life-Changing Liquidity Event and the Stages of Financial Freedom
It is important to note that your life-changing liquidity event will quickly advance you forward on the Stages of Financial Freedom. That leap illustrates the giant leap in needs, opportunities and even threats and dangers you are (or will soon be) exposed to as a result of your windfall event. It is this rapid change that our Life-Changing Liquidity Event specialty track is designed to help you navigate with excellence.
Frankly, you have (or soon will) likely outgrown most if not all of the structures, systems and support you have in place. Rather than finding out where these holes exist via trial and error, you will do much better getting a life-changing liquidity event makeover with our help. We will help you quickly organize and upgrade your systems and support – including the trusted advisors on your team – as needed.
Good Fortune to Great Fortune (NOT LOST FORTUNE)
You may have heard horror stories of others who have experienced life-changing liquidity events and went from a good fortunate to a lost fortune. Lotto winners are notorious for such stories (look them up on the web). What is often the common theme, in our opinion, is a vast increase in wealth without the vast increase in robust systems, structures and fiduciary/fee-only support. We can help you avoid such issues and complexities, with the goal of bringing from a state of good fortune to a state of great fortune. Most importantly, helping you act in ways that are incompatible with the characteristics and state of lost fortunes.
We often give prospective new clients an immediate value-add taste of how our Stages of Financial Freedom tool is useful. If you request, and we agree to meet with you to review your financial situation, we will likely take you through our proprietary Stages of Financial Freedom Exercise. This is an excellent way to pinpoint your goals and your needs as we uncover opportunities for improvement. When you are ready, call us at 303-721-7000 and we will be delighted to help you upgrade each element of your portfolio management, wealth management and retirement planning.
